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Updated almost 3 years ago on 11/30/2022. Most recent reply

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Peta WalkerPoster

Starting Out

HELOC vs 401K for Down Payment

Peta WalkerPoster

Posted November 01, 2022 10:26

Hello, I am a new investor with one rental currently. I took out a HELOC on my rental but with interest rates so high, does it make sense to use my 401K to fund my down payment instead of the HELOC? Please help!

Los Angeles County, California

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Nathan Gesner

Real Estate Broker
Cody, WY

Nathan Gesner

Real Estate Broker
Cody, WY

ModeratorReplied November 02, 2022 05:10

Quote from @Peta Walker:

Hello, I am a new investor with one rental currently. I took out a HELOC on my rental but with interest rates so high, does it make sense to use my 401K to fund my down payment instead of the HELOC? Please help!

Welcome to the BiggerPockets forums!

I don't like using a HELOC. It's borrowing to borrow and over leveraging.